Question: Consider the following statements:
(1) North East Venture Fund was launched by the North Eastern Development Finance Corporation Limited (NEDFi)
(2) NEDFi works as Non-Banking Financial Company (NBFC).
Choose the correct option:
(a) Only 1)
(b) Only (2)
(c) Both (1) and (2)
(d) None of the above
Answer: (c)
Related facts:
- The Government has informed the Parliament that North East Venture Fund (NEVF) has disbursed over Rs.18 crore to 12 start-ups.
North East Venture Fund (NEVF):
- It was launched in 2017 by the North Eastern Development Finance Corporation Limited (NEDFi) in association with the Ministry of Development of North Eastern Region (M-DoNER).
Aim:
- To contribute to the entrepreneurship development of the NER and achieve attractive risk-adjusted returns through long term capital appreciation by way of investments in privately negotiated equity related investments.
- It focuses on startups in five sectors namely (a) food processing (b) healthcare (c) tourism (d) aggregation of services and (e) IT and IT-enabled services.
- NEVF would inter alia invest in areas such as development of new products and services, technological up gradation, expansion or diversification, process improvement and quality improvement with the purpose of creating value for all stakeholders.
- It is a close ended fund with capital commitment of Rs 100 crore.
- Each investment will be limited to a minimum of Rs.25 lakh and a maximum of Rs.10 crores with long term investment horizon of 4-5 years.
NEDFi:
- North Eastern Development Finance Corporation Ltd (NEDFi) was incorporated as a public limited company under the Companies Act, 1956 in 1995.
- It is also categorized as Non-Banking Financial Company (NBFC)-Loan Company and was registered with the Reserve Bank of India (RBI) in 2002.
Links:
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1605421
https://mdoner.gov.in/contentimages/files/secondary_tertiary_sector_2013-14.pdf